IVA rejected

[archiebald]

IVA rejected (36p in £)they say i sold my house £7000 undervalue to my son, we avoided estate agent fees, relocation costs and got an immediate sale also it was at a value half way between 3 valuations (£160,000 £165,000 £170,000) i had what else am i supposed to do i feel like taking all the money and spending it, what could they do

[whichwaynow]

Can you post some more details then we may be able to help you.

[carlmcmullen]

Hi Archiebald,

That seems a little harsh and i would agree if you avoided those costs surely you saved money that way !!

Which creditor rejected the proposal ?

If there had been a significant undervalue i could understand but this does seem a little strange.

When you say 'i feel like taking all the money and spending it' did you make some money from the sale that you are offering creditors ?

[archiebald]

i was in such a state when rejected today i didnt take in the name but i do remember it was one that represents several creditors halifax being one , yes i did make money from sale and after solicitor fees and new boiler it is all being offered plus i cashed in endowment that was with morgage and all that was also in offer which was 36p in pound i think even CCCS were suprised, they have asked it be reconsidered and we should have final reply next week. i have no more assets and feel very angry, im doing my best to pay as much as possible. how did i let this happen

[scaredkez]

really sorry to hear it was rejected , but they probably though you had sold an asset on lower than its market value and you could have offered more if a sale had gone through, i can understand what you have done,but doesn't always look the same in the eyes of who you owe.
good luck kerri

[Lisa2009]

Fingers crossed it will be accepted next week. Perhaps its just been a case of them not realising the merits of what you did in terms of solicitors fees. A good IP will carefully explain this and try for a better result.
Good luck

mrs skint

[johnt]

Fingers crossed it will be accepted next week. Perhaps its just been a case of them not realising the merits of what you did in terms of solicitors fees. A good IP will carefully explain this and try for a better result.
Good luck

mrs skint

Considering the housing market is slowing right down, and much of the market is conservatively over valued at least 15% the decision to fail on the sale price is remarkable. Try another IP?

[carlmcmullen]

I would have to ask the question - did your IP expalin in your proposal the reason why you sold it an undervalue (to save on costs) and lets assume you didnt sell to your brother with a quick sale, and as John pointed out the housing maket has slowed right down so you would have inccured further mortgage payments (possibly another 12 months worth !!)

You didnt have HSBC as one of your creditors did you ?


I would be very tempted to get a second opinion on this as a £7,000 undervalue is not alot !!

[Jo Rolland]

Can I just ask when you sold the property? Were you going through the IVA process when it happened?

[archiebald]

we are in a payment plan at present and had tried for an iva last year but that also was rejcted as we could only offer payments with lump sum at end giving 24p in pound and creditors had said why should they wait 4yrs when if we went bankcrupt they would have money now so to avoid this we sold house and endowment giving a better return and their still not happy, as i said i sorely want to waste money and let them sing, I have no house or life paying all i can in an attempt to pay as much as possible i may as well go bankcrupt and it will give them even less.yes HSBC credit card is one of my creditors.

[carlmcmullen]

Personally archiebald we would not have put a proposal forward at 36p in the £ knowing that HSBC are in your creditor list.

Even if they are not making up 25% of the total vote, what happens is if HSBC are voting and The insolvency exchange are voting for them (who also vote for halifax, rbs an others) then they would enforce the 40p in the £ hurdle rate on all the creditors they vote for, regardless.

So i suspect this could have also added to the reason why it was not approved.

Have you seen a copy of the chairman’s report showing the rejection reasons on it ?

[archiebald]

that the name insolvency exchange, no report yet just a letter saying adjourned till next week. what would happen if i spend money and go bankcrupt

[jpj]

I would also argue that the ESTIMATED price the estate agents gave you were asking prices and not necessarily the final price you would have got for the property!
I would maybe look at offering an extra 6 months IVA payments on top in order to get your magic 40p in the pound figure if that came to it!

[Skippy]

This seems very unfair. As jpj says the estate agent's valuation is not always what the property sells for - when we moved last year the flat actually sold for £10k less than it was originally valued at!

[carlmcmullen]

If you spend the money an go bankrupt this can be considered a serious offence.

The offical receiver would look to recover the money and has the powers to reverse the sale of your property to your brother (ecspeacially if sold at an undervalue - although this is arguble)

Who advised you to sell the house, was it something you did before contacting your IP or somthing that was recommended by the IP ?

Have you asked your IP for any update on what he is doing to overcome the rejection ?